What's New? Federal Direct Loans

Beginning with the Fall 2010 term, Hillsborough Community College will be participating in the William D. Ford Federal Direct Loan Program (Direct Loan) for all Federal Direct Stafford and Parent (PLUS) Loans. 

By participating in Direct Loans, HCC ensures you are guaranteed access to stu­dent loan funding because student loan dollars are received directly from the federal government. The Direct Loan Program also provides the best borrower benefits available at this time. We think the Direct Loan model is easy for families to understand. Having ONE source for student loan funds reduces the confusion and complications for students, provides “one stop shopping,” more timely loan disbursements, and better customer service.

• Federal Direct Subsidized Stafford Loan
  First-year students can borrow up to $3,500 per academic year. Second-year students can borrow up to $4,500 per year. Second year students include those students who have completed 31 credit hours toward their degree, not including college preparatory credits. Transfer students must have their transcript(s) evaluated before applying for this loan. HCC will determine the amount for which a student is eligible. Payment of this loan does not begin until the student has been out of school for six months. This loan is available through the US Department of Education. The interest rate for Federal Direct Subsidized Loans disbursed after July 1, 2010 and before July 1, 2011 is 4.5%. Click on the "Financial Aid Forms" link to access the Stafford Loan Request form.
  
• Federal Direct Unsubsidized Stafford Loan
  This is a long term loan that can substitute or be awarded in addition to the Federal Direct Subsidized Stafford Loan. Interest begins accruing on these loans immediately upon disbursement at a rate of 6.8 even while the student is attending college. For more detaled information regarding loan amounts, students should contact a campus Financial Aid Office.
  Check out the BE DEBT SAVVY website that will provide valuable information to help you manage your student loans.
  

How to Apply for a Federal Direct Stafford Loan (Subsidized and Unsubsidized)
Students applying for a Federal Direct Stafford Loan must complete the following:

• (1) On-line Free Application for Federal Financial Aid (FAFSA) Make Sure HCC's School Code is listed, (007870) on your Application. Eligibility will be determined by the HCC Office of Student Financial Aid.
• (2)  Stafford Loan Request Form & Guide To Sensible Borrowing
• (3)  Student Agreement and Acknowledgement Form
• (4)  Loan Entrance Counseling Session for First Time Borrowers at HCC

If you requested a loan, the US Department of Education will send you an email instructing you to complete the online "Master Promissory Note" (MPN). You may access the MPN by clicking HERE. 

Managing the Money You Borrow for College
Check out this useful online program from Sallie Mae to help you be debt savvy.

Federal Direct PLUS Loan (Parent Loan for Undergraduate Students)
Parents of dependent students who are in need of additional funds to finance their son/daughter’s education may apply for a Federal Direct Parent Loan (PLUS). The PLUS loan is borrowed through the US Department of Education.

• To apply for a Parent PLUS loan, please visit https://studentloans.gov/myDirectLoan/index.action and click on Complete PLUS Request Process along the left hand side. HCC will receive confirmation of the approval or denial of the PLUS loan. Parent(s) are subject to a credit check when applying for a PLUS loan. Parents will also need their own Federal PIN number when applying for the PLUS. Please visit http://www.pin.ed.gov/ prior to applying for the loan in order to obtain your PIN. This will allow parents to electronically sign their application.
• Students whose parents are approved for the PLUS loan must complete an HCC Student Agreement and Acknowledgement Form and the PLUS Loan Funds Release form. The release form authorizes the college to receive the funds on your student's behalf and generate any applicable refund. The PLUS Loan funds release form can be found here.

• All students are encouraged to also complete the FASFA application. Students may apply online at http://www.fafsa.ed.gov/.

  
  Please contact your student’s home campus Financial Aid Office to confirm the processing status of the PLUS loan once the Promissory Note is submitted. This program enables parents who do not have an adverse credit history to borrow funds to pay for the education of dependent children. Applications are available in the campus financial aid office. PLUS Loans have a fixed interest rate of 7.9%. Interest accrues while the student attends school. Repayment begins immediately after disbursement. Parents can borrow up to the cost of education, minus any other financial aid.